Gjensidige Insurance Group Q1 2010
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Agenda I. Highlights II. Financial Performance III. Investment Performance IV. Solvency II V. Outlook Supplementary Information 3
Harsh winter contributed to a negative UW-result General insurance Underwriting result characterized by cold winter Cost performance in keeping with the objectives that were set for reduction of operating expenses and claims expenses The acquisition of Nykredit Forsikring gives Gjensidige a significant position in the Danish general insurance market Other business areas The bank is developing in keeping with expectations and reported a profit for the first time since start-up Strong growth in assets under management for Pension and savings with total assets under management exceeding MNOK 9,500 at the end of Q1 2010 Value creation A strong financial i result in the quarter ensures a satisfactory profit for the Group 6.2 per cent pretax return on equity (annualised) The Group The encouraging improvements in the Norwegian Customer Barometer survey show that Gjensidige's s focus on customer orientation gives measurable results Conversion to a public limited company unanimously approved by the annual general meeting Final implementation is pending approval by the authorities Preparing for a listing in second half of 2010 4
Financial highlights Earned premiums General insurance, net of reinsurance 15,660 First quarter Slight increase in earned premiums, mainly due to growth within private lines in Norway and commercial lines in Sweden 3,811 3,789 Net winter related claims of NOK 371 million above a normal level l for the first quarter a negative effect on the claims ratio of 9.7 Q1 2010 Q1 2009 2009 Underwriting result General insurance 818 A net positive effect on earnings of NOK 43 million as a result of taking early retirement (AFP) liabilities to income after the passage of the AFP-Act, equivalent to a positive effect on the cost ratio of 1.1 (369) 97 The combined ratio amounted to 109.7 in the quarter (97.4 in Q1 2009) Profit before tax expense of MNOK 344 (MNOK 296) Q1 2010 Q1 2009 2009 5
Focus on main drivers for continued success HR Norway s annual price to Gjensidige Management and skills development Gjensidige Customer and Brand School CEO/ Group Management Customer and brand academy Sales a cademy Claims a cademy E-learning Man nagement a cademy Shared administration Training init tiatives by choice Extreme customer orientation 1) From no. 56 to no. 17 NORWEGIAN CUSTOMER BAROMETER Ranking Company Satisfaction 1 Flytoget 84.4 2 BMW 83.7 3 Toyota 83.6 4 Vinmonopolet 83.0 5 Audi 82.0 6 Hurtigruten 81.9 7 Finn.no 81.4 8 SkandiaBanken 81.2 9 Skoda 81.1 10 Interoptikk 80.4 16 Terra Skadeforsikring 78.5 17 Gjensidige Forsikring (skade) 78.4 25 Sparebank 1 Skadeforsikring 77.0 32 Nordea 76.0 35 TrygVesta (skade) 75.7 36 TrygVesta (liv) 75.5 51 Storebrand (skade) 74.3 56 Postbanken 73.6 65 If 73.1 84 Gjensidige Forsikring (liv) 71.8 87 Sparebank 1 71.6 113 Fokus Bank 69.5 126 Storebrand (liv) 68.8 139 Nordea (liv) 66.8 153 DnB NOR 65.7 164 Vital Forsikring (liv) 63.9 187 DnB NOR Kapitalforvaltning 56.3 6 1) Source: Norsk Kundebarometer, a research project at The Norwegian School of Management. Norsk Kundebarometer conducts an annual customer satisfaction survey.
Gjensidige in Denmark Positioned for growth Strengthened distribution power for Gjensidige s branch operations in Denmark 310 real estate branches Nykredit - transaction closed Apr 29, 2010 Nykredit Group to sell and distribute Gjensidige s s non-life insurance products in the Danish market Products to be distributed under Nykredit and Gjensidige brands Extensive distribution, including 70 sales offices and two estate agencies with a total of 310 offices EDC distribution agreement Agreement in force from Oct 1, 2010 Denmark s largest real estate t agent with market share of approx. 21 per cent More than 240 branches Approx. 15,000 transactions annually Distribution agreement where insurance products are to be distributed under the Gjensidige brand, at Gjensidige s rates 7
Cost and Claims reduction Initiatives Status Q1 2010: According to plan Cost reduction initiatives* Claims reduction initiatives 72 (22) (90) 600 500 2010 2009 2011 500 400 2,654 2,614 300 200 273 Plan Actual 100 Costs 2009** Savings 2010 Remaining savings 2010 Target 2010 Cost Inflation 2010 Realised savings YTD 2010 Rest 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Annual effect (plan) 100 MNOK 280 MNOK 465 MNOK 8 * Only measures initiated in 2009 have full effect in Q1. Excl. effect of non-recurring income of MNOK 43 (AFP) ** Costs for general insurance excl. collective bonus of MNOK 46, and non-recurring provisions of MNOK 72 in 2009
Financial Performance
Key Figures (MNOK) Earned premiums General insurance, net of reinsurance Underwriting result General insurance 15,660 867 3,811 3,789 (369) 97 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 Net income from investments Profit before tax expenses 2,788 3,167 846 281 344 296 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 10
Q1 net winter related claims above normal level (MNOK) 15 67 66 371 224 Private Commercial Nordic Baltic Total 11
Key Financials Performance by business areas MNOK Q1 2010 Q1 2009 2009 Pi Private Norway (223) 16 552 Commercial Norway 25 73 305 Nordic (123) 23 153 Baltic (1) 16 41 Corporate Centre (47) (30) (233) Underwriting result (369) 97 818 Pension and savings (11) (35) (108) Online retail banking 5 (20) (76) Health care services 9 9 33 Return on financial assets 837 272 2,723 Amort. of excess value (124) (26) (217) Other items (2) (1) (7) Profit/(loss) before tax exp. 344 296 3,167 12
Quarterly Underwriting Results General Insurance (MNOK) 79 270 346 165 97 319 259 191 (369) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2008 2010 13
Premiums General Insurance (MNOK) 6,641 GPW development General insurance Q1 2009 Q1 2010 144 286 43 67 50* 6,523 Q1 2009 Private Commercial Nordic Baltic Group adj. Q1 2010 GPW development adjusted for currency effects** Q1 2009 Q1 2010 144 286 200 53 50* 6,641 6,695 Gross written premiums fell by 1.8 per cent in Q1 2010 vs. Q1 2009 Increase in Private is attributed to an improved growth in premiums in force compared with last year, together with the effect of premium increases that were carried out Decrease in Commercial due to a consistent focus on profitability, including through the major renewals at year-end Increase in the Nordic segment due to a general growth in business, where the fastest growth was seen in the commercial market in Sweden Decrease within the Baltic segment due to market contraction Q1 2009 Private Commercial Nordic Baltic Group adj. Q1 2010 14 *Group adjustments/ internal reinsurance **Translation based on average currency rate for Q1 2009
Large losses* - net General Insurance Q1 2010 (Q1 2009) Reported Expected Actual claims figures large losses large losses Claims MNOK 3,544 (MNOK 3,015) MNOK 128 MNOK 126 (MNOK 136) Loss ratio 93.0% (79.6%) 3.4% 3.3% (3.6%) Actual large losses by business area 74 63 50 51 12 13 0 0 Private Commercial Nordic Baltic 15 Q1 2010 Q1 2009 * Large losses > MNOK 10
Run-off net Run-off (MNOK) Run-off, % of earned premium 3.0 2.5 2.0 Group Life and Motor BI (Norway) Liability & Accident (Denmark) 1.5 1.0 0.5 300 0.0 104 100 Q1 2010 Q1 2009 2009-0.5-1.0-1.5-2.0 2000 2005 2004 2003 2002 2001 WC & Diseases (Norway) 2006 2009 2008 2007 2010 Q1 Egenregning For own account Gjennomsnitt Average Run-off gain in Q1 2010 of MNOK 104 Run-off gain in Q1 2010 due to: Stable and positive development of previous claims in motor (BI) in Norway Positive development of large fire claims in Norway Deflation in the Baltic business implies lower losses than expected 16
Cost Development General Insurance (MNOK) Cost development general insurance Q1 2009 Q1 2010 Cost decrease of 6.1 per cent in Q1 2010 vs. Q1 2009 29 Positive development in the Norwegian segments in Q1 677 9 14 4 24 23 15 636 Cost reducing initiatives Non-recurring income of MNOK 43 due to AFP-Act Increase in Nordic due to growth, especially within the Swedish commercial business and the white label l business Non-recurring income related to AFP Positive development in Baltic in Q1, mainly due to cost reducing measures implemented through 2009 and Q1 2010 17
Return on Equity Equity (MNOK) 22,226 21,968 Capital adequacy of 17.4 per cent (18.9 per cent year end 2009) Solvency margin of 677.3 per cent (713.8 per cent year end 2009) Q1 2010 YE 2009 Pre-tax Return on Equity (%) 15.2 6.2* Q1 2010 2009 18 * Annualised
Economic Capital Allocation* NOK bn 2.7 6.5 3.4 0.1 1.2 0.4 3.3 20.6 2.8 0.7 0.2 1.6 14 1.4 1.7 IFRS Equity Capital, dividend adjusted Bridging ECA and IFRS Equity Capital Excess economic capital available over binding requirements Additional binding capital requirements Health Bank Pension and savings Asset Risk, Storebrand Asset Risk (Non-life companies) ex Storebrand Baltic Nordic Commercial Norway Private Norway 19 * Adjusted for dividend for 2009 and the acquisition of Nykredit Forsikring
Investment Performance
Investment Performance Return Q1 2010 Per Asset Class Highlights first quarter 3.5 % Total investment portfolio of MNOK 52,650 as at 31 March 2010 2.1 % 1.7 % Positive return on the investment portfolio in Q1 2010 of 1.6 per cent (0.6 per cent) 1.3 % 12 1.2 % 12 1.2 % Good return on the fixed-income portfolio of 0.4 % 1.5 per cent Equit ties Mone ey Mark ket Curre ent bond ds HTM- -bonds Loan ns and recei vables Real estate Hedg gefunds and other Positive result of MNOK 82 from Storebrand and MNOK 35 from SpareBank1 SR-Bank (the latter based on Gjensidige s own estimate) Positive return in the Private Equity portfolio of MNOK 77 No special conditions affecting the real estate portfolio in the first quarter Impairment of international real estate funds of MNOK 13 21
Asset Allocation Asset Allocation March 31, 2010 (March 31, 2009) 2.7 % (3.2 %) 11.9 % (12.5 %) 4.3 % (0.0 %) 28.8 % (32.1 %) 12.9 % (6.9 %) 17.5 % (19.0 %) Equities Money market Current bonds HTM-bonds Loans and receivables Hedge funds and other Real estate 22.0 % (26.3 %) 22
Solvency II
Solvency II Overview of preparations Preparations for Solvency II GAP analysis performed in 2008 Project start up in 2009 Gjensidige is well positioned for compliance with SII, but adjustments and preparations are needed Status Participation in all QISes (2005 2010) ALM model in use for over 5 years ALM model includes all general insurance premiums* Risk Management System established with required functions Three lines of defense are in place Preparations for ORSA are planned; work on version 1 of ORSA document is started Significant involvement from Board of Directors and Group Management Group Risk Committee is steering group for Gjensidige s Solvency II project. Members are CEO, CFO, CRO, CIO, Executive VP Product/Underwriting, Executive VP International General Insurance, Chief Actuary 24 * Not including Nykredit
Solvency II Internal Model What is a Solvency II Internal Model? It s not just number-crunching It s company specific There are strict criteria for approval Gjensidige s Internal Model We have a capital model, in use since 2004 The model has been used actively in business processes The model was not developed to satisfy Solvency II: gaps exist Expected benefits Improved Enterprise Risk Management Improved alignment of regulatory and risk based capital requirement 25
Solvency II QIS5 preliminary estimate* QIS 5, preliminary NOK bn IFRS Equity 22.0 Balance sheet adjustments +4.8 Intangibles, dividends - 4.1 Own Funds 22.7 QIS 5 preliminary capital implications Excess capital of NOK bn 11.3 Nykredit acquisition utilises NOK bn 2.4 of excess capital Investments in Storebrand (STB) and Sparebank1 SR-Bank (ROGG) of NOK bn 5.4 Most of Own funds qualify for Tier1, leaving considerable capacity for hybrid capital Market risk 4.6 UW risk 10.3 Operational risk 0.9 Cap.req. subsidiaries 0.6 (non-insurance) Diversification -5.0 SCR Group 11.4 Excess capital 11.3 26 Considerable uncertainty Considerable uncertainty remains regarding the final Solvency II requirements Many uncertainties with regards to interpretation of QIS 5 technical specifications Main assumptions STB and ROGG investments are counted as part of excess capital QIS5 preliminary specifications are used Natural Perils Fund included in Own Funds * Based on Group figures as of 31 December 2009
Solvency II Final remarks Preparing for Solvency II Gjensidige is well positioned in their overall preparations Gjensidige will apply for use of an internal model Considerable regulatory uncertainty remains regarding the details of Solvency II and its impact on the capital requirement 27
Outlook 28
Outlook Poor underwriting results in the first quarter of 2010 due to the harsh winter. A normal trend in the insurance operations is expected for the rest of the year. The competition in the Nordic and Baltic general insurance market is still increasing, and is expected to remain tough going forward. The distribution power in Denmark has been considerably strengthened through strategic agreements with Nykredit and EDC. The bank has achieved a volume that should make it possible to operate profitably in the coming years. The financial markets are marked by uncertainty as to the effects of changes in economic policy and the weakened fiscal position for a number of countries. The Group s capital situation and financial solidity is strong 29
Attractive Nordic General Insurance Market Fundamentals A unique model Market Leader in Norway - Strong Brand and Customer Affiliation Attractive Return on Equity Supported by Strong Capitalisation Scope for Further Cost and Revenue Efficiencies - In combination with Attractive Growth Opportunities Value Focused Management Team with Outstanding Track Record 30
Supplementary Information
Key Financials Group Figures MNOK Q1 2010 Q1 2009 2009 Gross premiums written, total 7,226 7,065 18,276 Loss ratio, Gen. ins. 93.0% 79.6% 77.1% Cost ratio, Gen. ins. 16.7% 17.9% 17.7% UW result, Gen. ins. (369) 97 818 Net income from inv. 846 281 2,788 Profit/(loss) before tax exp. 344 296 3,167 Profit for the period 257 170 2,305 32
Asset class exposure Equity exposure Main equity exposures are the stakes in Storebrand and SpareBank 1 SR-Bank, private equity and current shares Split of fixed income portfolio NOK mill. % Fixed income exposure Money market instruments 9.188 24,1 % Non-public rated issuers are mainly Norwegian savings banks, municipals, credit institutions and power producers and distributors Bonds: Bonds held to maturity 15.164 39,7 % Bonds loans and receivables 2.256 5,9 % Bonds held for trading 8.316 21,8 % Investment grade bond (international) 2.183 5,7 % High yield bond funds (international) 1.087 2,8 % Total bonds 29.006 75,9 % Sum 38.194 100,0 % Rating NOK mill. % Investment grade 29.141 77,1 % High yield 1.193 3,2 % Non rated 7.860 19,8 % Sum 38.194 100,0 % 33 Rating - including internal rating by Storebrand NOK mill. % Investment grade 35.419 93,7 % High yield 1.193 3,2 % Non rated 1.581 3,2 % Sum 38.194 100,0 %
Cost Development General Insurance Norway Employees general insurance Norway 2,272 2,242 2,033 2,060 2,055 2,041 1,990 70 employees transferred from GPS June 1, 2008 Baseline YE 2005 YE2006 YE2007 YE2008 YE2009 Q1 2010 Branch offices general insurance Norway 141 138 104 72 53 51 34 Baseline YE 2005 1 April 2007 YE2007 YE2008 YE 2009 Q1 2010
Market leader in Norway Across segments and most product lines Market shares Total market Market share - Commercial 8.9 % 2.3 % 2.4 % 3.8 % 9.9 % 28.4 % Gjensidige If TrygVesta Sparebank1* Terra 30.6% 30.0% 17.5% 17.3 % 27.0 % Codan DnB NOR Other 4.7% Gjensidige If TrygVesta Sparebank1* Market share - Private Market share Agriculture (Part of Private) 71.9 % 27.5% 25.8% 17.0% 12.3% 15.8 % 2.1 % 9.4 % Gjensidige If TrygVesta Sparebank1* Gjensidige If TrygVesta Terra 35 Source: FNO, general insurance, 31 December 2009. The definition of Private and Commercial is adjusted to reflect Gjensidige s business model. * Sparebank1 non-life and Sparebank1 life report separately to FNH. In this illustration the Sparebank1 figures have been joined.
General Insurance General Insurance Private Norway
Highlights General Insurance Private Norway Product Lines March 31, 2010 (March 31, 2009) Highlights first quarter Other 7.0% (6.5%) Agri- culture 11.4% (11.7%) Motor 32.4% (31.7%) Earned premiums, net of reinsurance, performed positively in the quarter with an increase of 3.6 per cent from Q1 2009 to Q1 2010 The underwriting result in Q1 2010 was negative MNOK 223 compared to positive MNOK 16 in Q1 2009, as a result of a long period with low temperatures during the winter Accident and health 31.1% (32.3%) Increase in the level of large losses from MNOK 12 in Q1 2009 to MNOK 63 in Q1 2010, whilst the run-off loss decreased in Q1 2010 compared to Q1 2009 Property Considerable improvement of cost ratio from 18.2% (17.8%) 17.9 per cent in Q1 2009 to 15.3 per cent in Q1 2010. A decrease in nominal costs of MNOK 112 in Q1 2010 against Q4 2009 Combined ratio of 111.5 in Q1 2010 (99.1 in Q1 2009) 37
Key Figures General Insurance Private Norway Gross Premiums Written (MNOK) Combined Ratio (%) 8,035 111.5 99.1 2,557 2,413 93.0 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 Net Loss Ratio (%) Cost Ratio (%) 96.2 81.2 76.5 17.9 16.5 15.3 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 38
General Insurance General Insurance Commercial Norway
Highlights General Insurance Commercial Norway Product Lines March 31, 2010 (March 31, 2009) Liability 5.2 % (4.5%) Highlights first quarter Earned premiums, net of reinsurance, fell by 5.5 per cent in Q1 2010 compared to Q1 2009, to MNOK 1,111, due to a consistent focus on profitability Marine Lower underwriting result as a result of many 8.5 % winter-related claims. Underwriting result of (10.3%) MNOK 25 in Q1 2010 against MNOK 73 in Q1 2009 Motor 14.2 % Accident Large losses in Q1 2010 of MNOK 13 against (14.6%) and health MNOK 74 in Q1 2009, whilst there is an 45.7 % increase in run-off gain from Q1 2009 to Q1 (46.9%) 2010 Property 25.8 % (22.9%) Cost ratio of 12.5 in Q1 2010 against 13.4 in Q1 2009. Nominal costs decreased with MNOK 18 in Q1 2010 against Q1 2009 Combined ratio of 97.7 in Q1 2010, compared with 93.8 in Q1 2009 Other 0.6 % (0.8%) 40
Key Figures General Insurance Commercial Norway Gross Premiums Written (MNOK) Combined Ratio (%) 5,004 97.77 2,266 2.552 93.8 93.6 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 Net Loss Ratio (%) Cost Ratio (%) 85.2 80.4 80.6 12.5 13.4 12.9 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 41
General Insurance General Insurance Nordic
Highlights General Insurance Nordic Product Lines March 31, 2010 (March 31, 2009) Highlights first quarter Property 46.0% (32.0%) Marine 0.3% (0.0%) Liability 7.5 % (6.5%) Other 0.4% (1.2%) Accident and health 15.8% (36.0%) Motor 30.0% (24.3%) Earned premiums, net of reinsurance increased with 13.3 per cent, from MNOK 560 in Q1 2009 to MNOK 635 in Q1 2010. The increase is due to a general growth in the business, with the fastest growth in the commercial market in Sweden Reduced underwriting result because of a high proportion of winter claims and a major claim in Sweden. Negative underwriting result of MNOK 123 in Q1 2010 against positive underwriting result of MNOK 23 in Q1 2009 A slight decrease in large losses in Q1 2010 compared to Q1 2009. The run-off gains in Q1 2010 are lower than in Q1 2009 Increasd cost ratio as a result of the growth in the commercial segment in Sweden. Cost ratio of 18.6 per cent in Q1 2010 compared to 16.9 per cent in Q1 2009. Nominal costs increased with MNOK 24 in Q1 2010 against Q1 2009 Combined ratio in Q1 2010 of 119.4 (95.8 in Q1 2009) 43
Key Figures General Insurance Nordic Gross Premiums Written (MNOK) Combined Ratio (%) 2,657 119.4 95.8 93.6 1,619 1.576 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 Net Loss Ratio (%) Cost Ratio (%) 100.7 18.6 79.0 76.3 16.9 17.4 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 44
General Insurance General Insurance Baltic
Highlights General Insurance Baltic Product Lines March 31, 2010 (March 31, 2009) Highlights first quarter Liability 5.9 % (5.0%) Other 2.7% (2.7%) A decrease in earned premiums, net of reinsurance, of 30 per cent from Q1 2010 to Q1 2009 as a result of continued market decline in the Baltic insurance market Diminished underwriting result as a result of the snowy winter. Underwriting result of negative MNOK 1 in Q1 2010 against positive MNOK 16 in Q1 2009 Accident and health No large losses. Run-off gain in Q1 2010 slightly 20.1 % higher than in Q1 2009 (17.2%) Motor 56.0 % (65.9%) Improved cost ratio through initiation of more cost-cutting measures. Cost ratio of 27.3 in Q1 2010 (31.4 in Q1 2009) Property 15.3 % (9.2%) Combined ratio in Q1 2010 of 100.6 against 91.6 in Q1 2009 46
Key Figures General Insurance Baltic Gross Premiums Written (MNOK) Combined Ratio (%) 592 100.6 111 178 91.6 93.9 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 Net Loss Ratio (%) Cost Ratio (%) 73.3 60.2 62.0 31.4 31.9 27.3 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 47
Pension and savings
Highlights Pension and savings Assets Allocation Group Policy Portfolio (MNOK) March 31, 2010 (March 31, 2009) Highlights first quarter Very satisfactory increase in AUM, with a total AUM growth in Q1 2010 of MNOK 3,804, to MNOK 9,855 as at 31 March, 2010 49 Profit margin savings of 0.16 per cent in Q1 Other 2010, compared to 0.19 percent in Q1 2009 financial inv. 31.1 % (42.5 %) HTMbonds 37.8 % (38.5 %) Value-adjusted return on the paid-up policy portfolio performed positively with a return of 1.42 per cent in Q1 2010 against 0.54 per cent in Q1 2009 i bl Loss before tax for Q1 2010 of MNOK 11 compared with a loss of MNOK 35 in Q1 2009. The positive performance was mainly attributed to a strong growth in income, a positive return on the group policy portfolio Loans and receivables 12.8 % (0.0 %) Current bonds 11.6 % (0.0 %) Equity funds 5.5 % Money (3.8%) market 1.0 % (15.2 %) and a lower cost level 95.1 per cent of the customers at the end of the quarter were also insurance customers Handelsbanken s portfolio transferred to Gjensidige from Q1 2010
Key Figures Pension and savings Assets Under Management (MNOK) Profit Margin Savings (%) 1 9,855 090 0.90 Addition in the period 6,051 3,804 509 0.16 0.19 Q1 2010 Q1 2009 31.03.2010 YE 2009 Q1 2010 Q1 2009 2009 Customer Development Profit before tax 59,865 59,325 Q1 2010 Q1 2009 2009 Addition in the period (11) (35) 540 4,705 Q1 2010 Q1 2009 31.03.2010 YE 2009 50 (108) 1) Management income divided by average AUM (savings)
Online retail banking
Highlights Online retail banking Lending and Deposits (MNOK) March 31, 2010 (March 31, 2009) Highlights first quarter Lending 12,222 (7,215) Deposits 6,702 (6,243) Loan book growth of MNOK 646 in Q1 2010, to a total loan book of MNOK 12,222 as at March 31, 2010 Deposits increased with MNOK 152 in Q1 2010 to a total of MNOK 6,702 Deposits-to-loan ratio of 54.8 per cent as at March 31, 2010 Profit before tax for the first time since start-up in January 2007. Profit before tax in Q1 2010 of MNOK 5, compared to loss before tax of MNOK 20 in Q1 2009 Substantial improvement in the net interest rate as a result of the acquired consumer loan portfolio The number of registered customers increased with 1,245 in Q1 2010, to a total of 77,190 customers as at March 31, 2010 49.4 per cent shared customers with General Insurance Norway at the end of Q1 2010 52
Key Figures Online retail banking Loans (MNOK) Deposits (MNOK) 12,222222 11,576 6,702 6,550 Addition in the period Addition in the period 646 503 152 111 Q1 2010 Q1 2009 31.03.2010 YE 2009 Q1 2010 Q1 2009 31.03.2010 YE 2009 Deposit Ratio (%) Customer Development Addition in the period 54.8 56.6 Addition in the period 77,190 75,945 22.1 0.2 Q1 2010 Q1 2009 31.03.2010 YE 2009 1,245 2,234234 Q1 2010 Q1 2009 31.03.2010 YE 2009 53
Health care services
Highlights Health care services Revenue Split Health care services March 31, 2010 (March 31, 2009) Work environment surveys 1.6 % (2.4%) Highlights first quarter Operating income remained roughly the same in Q1 2010 compared to Q1 2009, with MNOK 127 Operating costs decreased slightly to MNOK 118 in Q1 2010 (MNOK 119 in Q1 2009) Private hospital and specialist services 23.1 % (24.4%) Personal security alarm services 19.1 % (19.7%) Corporate health care services 56.1 % (53.5%) EBITA-margin of 6.9 per cent in Q1 2010, against 6.7 per cent in Q1 2009. The increase in the margin is attributed to a combination of higher employment of the HSE consultants as a result of higher demand, and the effect of cost reducing measures implemented in 2009 55
Key Figures Health care services Revenues (MNOK) Costs (MNOK) 509 477 127 127 118 119 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 EBITA Margin (%) EBITA (MNOK) 6.9 32.7 67 6.7 6.4 8.8 8.5 Q1 2010 Q1 2009 2009 Q1 2010 Q1 2009 2009 56